Labour Market Profile Morocco 2020/2021
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Labour Market Profile
Morocco – 2020/2021
Danish Trade Union
Development Agency
The profile provides a comprehensive overview of the labour
market’s structures, development, and challenges.
Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
PREFACE
Danish Trade Union Development Agency (DTDA) is the development and legal reforms, status vis-à-vis ILO
development organisation of the Danish trade union conventions and labour standards, among others.
movement. This agency was established in 1987 by the
two largest Danish confederations – Danish Federation Primary sources of data and information for LMPs are:
of Trade Unions (Danish acronym: LO) and Danish
Confederation of Professionals (Danish acronym: FTF). • As part of programme implementation and
These confederations merged to become the Danish monitoring, national partner organisations provide
Trade Union Confederation (Danish acronym: FH) in annual narrative progress reports, including
January 2019. Correspondingly, former known as information on labour market developments.
LO/FTF Council was changed to DTDA.
• National statistical institutions and international
The work of DTDA is in line with the global Decent Work databanks are used as a source for collection of
Agenda (DWA) based on its pillars: creating decent jobs, general (statistical) data and information such as
guaranteeing rights at work, extending social protection, ILOSTAT and NATLEX, World Bank Open Data, ITUC
and promoting social dialogue. The overall development Survey of Violations of Trade Union Rights, the U.S.
objective of DTDA’s interventions in the South is to Department of State as well as other international
eradicate poverty and support the development of just recognised labour-related global indexes.
and democratic societies by furthering the DWA.
• Academia and media sources (e.g. LabourStart,
DTDA works in partnership collaboration with trade union national news, among others) are furthermore used
organisations in Africa, Asia, Latin America, and the in the available research on labour market issues.
Middle East. The immediate objective of the programme
implementation is to assist the partner organisations in Labour Market Profiles for more than 30 countries are
becoming change-agents in their own national and available on DTDA’s website:
regional labour market context, capable of achieving https://www.ulandssekretariatet.dk/.
tangible improvements in the national DWA conditions,
and towards the achievement of the labour-related DTDA prepared the Labour Market Profile in
Sustainable Development Goals (SDGs). collaboration with the DTDA MENA sub-Regional Office
in Tunisia. If any comments or questions arise for the
The format of the Labour Market Profile (LMP) provides profile, please contact Mr. Kasper Andersen
a comprehensive overview of the labour market situation (kan@dtda.dk) from DTDA.
in the individual countries of engagement. The profile is
divided into nine thematic sections describing the Cover Photo: factory worker from Morocco
economic performance, labour legislation, social photographed by Mr. Moltzen.
partners, social dialogue, violations of trade union rights,
working conditions, the general status of the workforce, Address:
education, and social protection. Ulandssekretariatet
Islands Brygge 32D
In the framework of DWA and SDGs, LMPs are following DK-2300 Copenhagen S
several central indicators addressing aspects of labour Denmark
market development, especially the unionism evolution, Telefon: +45 33 73 74 40
social dialogue and bi-/tri-partite mechanisms, policy https://www.ulandssekretariatet.dk/
Page i
Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
EXECUTIVE SUMMARY
Morocco’s economic growth has been relatively high, at A declining trend of the labour force participation rate
3.4% on average during the last decade. Labour accelerated during the 2010s, especially among youth,
productivity stays low compared to the Northern Africa which was part of the considerable upturn in school
average due to the volatile agricultural sector and enrolment on all levels. Alterations in the employment
fragile integration of the industry and service sectors. structure progressed in the projected intensifying share
Minimum wages have increased in real terms, notably in of employees (i.e. workers who hold paid employment
the public sector. It backed a growing middle-class jobs) moving from the agricultural sector to the service
reaching approximately 77% among the employed in sector. The employment share in the industry sector
2020. The economic recession in 2020, as an impact of dropped on the margin, especially for women in the
the global coronavirus (COVID-19) pandemic, infused a manufacturing sector.
hike in unemployment and put many people balancing
on the poverty threshold line. The rising youth unemployment rate during the 2010s
and pervasive long-term unemployment echoed the
Several labour-related reforms were launched during underlying weaknesses of the labour market and
the 2010s. Three international ILO conventions economy. These factors linked the lack of inclusion in the
concerning Occupational Safety and Health (OSH), labour market sticking to youth and women. Low quality
migration for employment, and social security were of jobs caught by informal employment furthermore
ratified in June 2019. It is important to realise that grasps gaps in social protection coverage.
around one out of two Moroccan workers operates in the
informal economy that loopholes in labour and business The Moroccan out-migration flow faced brain-drain for
regulations, often due to lack of awareness or incentives. decades. Personal remittances became a significant part
of the economy, and its volume hovered above the
Several tripartite mechanisms are operational, but foreign direct investments. The entry to Europe has
labour-relations are challenged in practice, e.g. become increasingly difficult for African job-seeker
Moroccan employers often consider cooperation in migrants and around 700,000 ends settled in Morocco.
labour-employer relations at low-medium ranking. They mostly lack legal status and end operating in the
Tensions mounted between the government and the trade informal economy. An impact of COVID-19 tightened the
union movement in recent years. To cool the social influx of asylum seekers and put many in critical health
dialogue frictions, the government, trade unions, and situations and further economic insecurity in limbo.
employers’ organisation signed the Social Dialogue
Agreement in April 2019 to improve tripartite During the last two decades, the declining child labour
consultation on work-related issues. This agreement has rate was aided by impressive growth in school enrolment
not yet reached significant improvements in the tripartite as well as curbing the gender gaps. Nevertheless, the
negotiations. quality of the education system has been blighted by
severe drop-outs rates; and around one out of three in
Enterprises with at least 50 workers are required to employment have less than basic education.
organise bipartite OSH committees. Since a large
majority is micro- or small enterprises most pass this The country’s social security system is fragmented with
regulation. Bipartite collective bargaining agreements’ deep coverage disparities. Although the social protection
coverage is meagre but under development. Unionism is coverage concerning insurance or health assistance
contested in raising the membership rate from several scheme has increased significantly during the 2010s, the
fronts. The trade union density of employment reached private out-of-pocket health expenditure rests high. In
6.9% in 2019, which was relatively low in comparison to recent years, the novel health insurance scheme for self-
other Northern Africa countries. Organised workers are employed workers and the Job Loss Allowance Code
countered by “regular violations of rights”, according to demonstrated modest results in the scope. A reform of
the Global Rights Index. the few pending subsidies schemes is stalled shielded by
the low international energy prices, and to avoid its
The population’s structure changed because of the potential significant increase in poverty.
declining fertility rate and halving the dependency ratio.
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Morocco Labour Market Profile 2020/2021
The table below presents key labour market indicators in On the next page, Page iv, the second table presents an
the framework of the Decent Work Agenda (DWA) that overview of the current value and targets of the
are related to central unionism issues. Sustainable Development Goals indicators’ in relation to
the labour market issues.
Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Morocco
Creating decent jobs
Yes, active labour programmes on wage subsidies for unemployed graduates, youth
training, and entrepreneurship promotion through training and financial assistance
Policy reforms addressing creation of decent have been implemented. Other sectoral plans (e.g. Morocco's Global Jobs and
employment Moroccan Green Plan) aim to promote job creation through macroeconomic and
sectoral policies (e.g., compensation reform, flexible exchange rate policy, pro-
growth sector strategies).
The only registered legislation related to the informal economy is Act No. 18-97 of
5 February 1999 on microcredit. A tripartite National Informal Economy Forum has
ILO standard setting on improvement of status of not yet been established. The Cities of Trades and Competences programme to
workers from the informal economy
promote TVET and build the capacities of young people working in informal economy
is planned to be launched in 2021.
Guaranteeing rights at work
Growth in partner trade union members (%) UMT, UGTM and CDT membership decreased 49% from 2012-2019.
Violations of trade union rights Ranking 3 out of 5 (5+ is the worst). *
Domestic Workers Law took effect in 2018. And, the government passed a bill in
Labour legislation is improved according to ILO 2020 concerning fixed-term contracts that equal treatment between Moroccan and
standards
foreign employees.
Partner organisations with minimum 30% women
N/a
representation in decision-making bodies
Extending social protection
Coverage of social protection and labour
programmes as % of total population in partner 41%.
countries
Régime d’Assistance Médicale (RAMED) covers for low-income Moroccans, such as
those working in the informal economy. Just a minority of informal workers are
covered in practice. In 2020, the government launched an ambitious goal to
Workers from the informal economy have access to accelerate an expanding of social welfare protection to all its citizens within five
national social security schemes years through a gradual approach. The Ministry of Economy and Finance recently
announced that the finance bill of 2021 includes the objective of generalisation of
social protection to allow the self-employed to benefit from family allowance, and
on a later stage, the retirement and compensation for loss of employment.
Promoting social dialogue
Trade union density of total employment (%) 6.9% (14% of employees).
Cooperation in labour-employer relations Ranking 104 out of 141 (1 is best). **
Number of Collective Bargaining Agreements N/a
(CBAs)
Workers’ coverage of Collective Bargaining
Agreements to employees 15% based on the central tripartite agreement on wages from 2019.
In recent years, social dialogue has been combative due to pension scheme reforms.
Bi-/tri- partite agreements concluded A national tripartite agreement was concluded in April 2019, concerning wage
increase in public and private sectors of 10% (5% 2020 and 5% in 2021).
* This is interpreted as a “regular violations of rights.” It concerns government and/or companies are regularly interfering in collective labour rights and/or
failing to fully guarantee important aspects of these rights (Global Rights Index, 2020).
** This indicator is based on data from the Global Competitiveness Index’s labour market efficiency indicator that represents employers’ opinion from surveys.
Sources: ILO, ITUC, World Economic Forum, DTDA research and own calculations on trade union density and CBAs coverage.
Page iiiDanish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
Status of key Sustainable Development Goals in labour market related issues in Morocco
Indicators Value Year SDG Targets
1.1.1: Working poverty rate (percentage of By 2030, eradicate extreme poverty for all people everywhere,
0.4% 2020
employed living below US$1.9 PPP) currently measured as people living on less than $1.25 a day
1.3.1: The population effectively covered by Implement nationally appropriate social protection systems and
a social protection system, including social 40% * 2009 measures for all, including floors, and by 2030 achieve substantial
protection floors. coverage of the poor and the vulnerable
Ensure women’s full and effective participation and equal
5.5.2: Women share of employment in
13% 2018 opportunities for leadership at all levels of decision-making in
managerial positions
political, economic and public life
Sustain per capita economic growth in accordance with
8.1.1: Annual growth rate of real GDP per national circumstances and, in particular, at least 7 per cent
1.6% 2018
capita gross domestic product growth per annum in the least
developed countries
Achieve higher levels of economic productivity through
8.2.1: Annual growth rate of real GDP per diversification, technological upgrading and innovation
- -
employed person through a focus on high value-added and labour-intensive
sectors
8.3.1: Proportion of informal employment in Promote development-oriented policies that support
- -
non-agriculture employment productive activities, decent job creation, entrepreneurship,
8.3.1: Women - - creativity and innovation, and encourage the formalisation
and growth of micro-, small- and medium-sized enterprises,
8.3.1: Men - - through access to financial services
8.5.1: Average hourly earnings of women and
- -
men employees
8.5.2: Unemployment rate (Total, 15+) 9.8% 2018
By 2030, achieve full and productive employment and decent
8.5.2: Women, 15+ 14% 2018 work for all women and men, including young people and
persons with disabilities, and equal pay for work of equal
8.5.2: Women, 15-24 years 39% 2018
value
8.5.2: Men, 15+ 8.4% 2018
8.5.2: Men, 15-24 years 25% 2018
8.6.1: Proportion of youth (15-24 years) not By 2020, substantially reduce the proportion of youth not in
- -
in education, employment or training) employment, education or training
8.7.1: Proportion and number of children
Take immediate and effective measures to eradicate forced
aged 5-17 years engaged in child labour - -
labour, end modern slavery and human trafficking and secure
(Total)
the prohibition and elimination of the worst forms of child
8.7.1: Girls - - labour, including recruitment and use of child soldiers, and by
8.7.1: Boys - - 2025, end child labour in all its forms
8.8.1: Frequency rates of fatal and non-fatal
- - Protect labour rights and promote safe and secure working
occupational injuries
environments for all workers, including migrant workers, in
8.8.2: Level of national compliance with
particular women migrants, and those in precarious
labour rights (freedom of association and - -
employment
collective bargaining)
Promote inclusive and sustainable industrialisation and, by 2030,
9.2.2: Manufacturing employment as a significantly raise industry’s share of employment and gross domestic
11% 2012
proportion of total employment product, in line with national circumstances, and double its share in
least developed countries
10.4.1: Labour income share as a percent of Adopt policies, especially fiscal, wage and social protection policies,
44% 2017
GDP and progressively achieve greater equality
* Persons above retirement age receiving a pension (see also Table 21).
Source: United Nations, Sustainable Development Goals, Knowledge Platform, UNICEF 2016 and ILO, Key Indicators of the Labour Market (KILM)
Page ivDanish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
COUNTRY MAP
Source: CIA, World Factbook
Page vDanish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
TABLE OF CONTENTS
PREFACE ...................................................................................................................................................................... I
EXECUTIVE SUMMARY ............................................................................................................................................... II
Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Morocco .......................iii
Status of key Sustainable Development Goals in labour market related issues in Morocco ...................................................iv
COUNTRY MAP .......................................................................................................................................................... V
ECONOMIC PERFORMANCE....................................................................................................................................... 1
Free Zones (FZ) .......................................................................................................................................................................................... 2
LABOUR LEGISLATION ............................................................................................................................................... 3
Observations on labour legislation ....................................................................................................................................................... 4
Ratified ILO Conventions ......................................................................................................................................................................... 4
Labour policies........................................................................................................................................................................................... 5
Trade Agreements .................................................................................................................................................................................... 5
SOCIAL PARTNERS ..................................................................................................................................................... 6
Government ................................................................................................................................................................................................ 6
Trade Unions .............................................................................................................................................................................................. 6
Employers’ Organisations ........................................................................................................................................................................ 8
SOCIAL DIALOGUE ..................................................................................................................................................... 9
Tripartite institutions................................................................................................................................................................................10
TRADE UNION RIGHTS VIOLATIONS........................................................................................................................ 11
WORKING CONDITIONS .......................................................................................................................................... 12
WORKFORCE ............................................................................................................................................................ 13
Unemployment and Underemployment ..............................................................................................................................................15
Sectoral Employment ..............................................................................................................................................................................16
Migration ..................................................................................................................................................................................................17
NET MIGRATION RATE (MIGRANTS PER 1,000 PERSONS) ....................................................................................... 18
Informal Economy ....................................................................................................................................................................................19
Child Labour .............................................................................................................................................................................................20
Gender ......................................................................................................................................................................................................21
Youth ..........................................................................................................................................................................................................22
EDUCATION ............................................................................................................................................................. 23
Vocational Training.................................................................................................................................................................................25
SOCIAL PROTECTION ............................................................................................................................................... 26
APPENDIX: ADDITIONAL DATA ............................................................................................................................... 29
Table 23: Ease of Doing Business in Morocco, 2020 ......................................................................................................................29
Table 24: List of approved labour related legislations in Morocco, 2015-2019....................................................................29
Table 25: Morocco’s ratification of ILO Conventions ......................................................................................................................32
Table 26: List of CBAs signed by UMT, 2009-2020 ......................................................................................................................33
Table 27: Specific labour and employment issues governed by Morocco’s Labour Code ....................................................33
REFERENCES ............................................................................................................................................................. 34
Page viDanish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
Tables
Table 1: Key economic data in Morocco, 2019 ...................................................................................................................................... 1
Table 2: Estimation and projection of employment by economic class in Morocco, 2000-2019 ................................................. 1
Table 3: Results of the professional elections, 2015.2020................................................................................................................... 3
Table 4: Status of trade unions in Morocco, 2019 ................................................................................................................................. 6
Table 5: Main trade union centres membership trend in Morocco, 2012-2019 ............................................................................. 7
Table 6: Labour market efficiency in Morocco, 2019 ........................................................................................................................... 8
Table 7: ILO Complaints Procedure, Freedom of Association Cases in Morocco, 2019 ..............................................................12
Table 8: Salaries and minimum wage in Morocco, Monthly average and minimum wage real growth ..................................12
Table 9: Status of Working Conditions in Morocco ..............................................................................................................................13
Table 10: Employment-to-population ratio, age and Sex distribution, %, 2020..........................................................................14
Table 11: The unemployment rate and labour utilisation in Morocco and Northern Africa, %, 2019 .....................................15
Table 12: Employment sector distribution in Morocco, 2020 .............................................................................................................16
Table 13: GDP share by sector and workers’ value added to GDP in Morocco, 2016 .............................................................17
Table 14: Status of net migration and remittance ................................................................................................................................18
Table 15: Status of informal economy in Morocco ...............................................................................................................................19
Table 16: Evolution of informal employment in non-agricultural employment in Morocco, 2007-2013..................................20
Table 17: Child labour in Morocco, age 7-17, 2019..........................................................................................................................20
Table 18: Estimation on workforce key indicators gender gaps in Morocco, %, 2020 ...............................................................22
Table 19: Employment by education in Morocco, % of employment distribution, age 15+, 2012 ..........................................24
Table 20: Status and trends on vocational training in Morocco and MENA (excluding high income), 2010-2018 ..............25
Table 21: Social protection coverage in Morocco, latest year available ......................................................................................26
Table 22: Expenditure of health and social protection benefit schemes, % of GDP, latest year available ..........................28
Table 23: Ease of Doing Business in Morocco, 2020 ...........................................................................................................................29
Table 24: List of approved labour related legislations in Morocco, 2015-2019 .........................................................................29
Table 25: Morocco’s ratification of ILO Conventions ...........................................................................................................................32
Table 26: List of CBAs signed by UMT, 2009-2020 ...........................................................................................................................33
Table 27: Specific labour and employment issues governed by Morocco’s Labour Code .........................................................33
Figures
Figure 1: Gross Domestic Product, inflation, and current account balance in Morocco, %, 2010-2021 .................................... 1
Figure 2: Population pyramid based on Age-Sex structure of the population in Morocco, 2020 ............................................13
Figure 3: Labour force participation rate in Morocco and Northern Africa, %, 2000-2020.....................................................14
Figure 4: Estimations of status of employment in Morocco, %, 2000-2020 ...................................................................................14
Figure 5: Labour productivity trend, output per worker with forecast, US$, 2000-2020 ..........................................................14
Figure 6: Estimation and projections of unemployment trends in Morocco and Northern Africa (NA), %, 2000-2021 .......15
Figure 7: Employment by aggregate sector in Morocco, %, 2000-2020 ......................................................................................16
Figure 8: Sectors’ value added in Morocco and the Middle East and Northern Africa (MENA) (excluding high income), %
of GDP, 2000-2019 ...................................................................................................................................................................................17
Figure 9: Net-migration trend in Morocco, 1998-2017......................................................................................................................18
Figure 10: Enterprise Survey in Morocco, Women participation in ownership, top management, and as full-time workers,
%, 2019 .........................................................................................................................................................................................................22
Figure 11: NEET share in Morocco, %, 2005-2020 .............................................................................................................................23
Figure 12: Enrolment in Primary, Secondary and Tertiary schools, male and female, Morocco and Middle East and North
Africa (MENA), %, 2000-2017 ................................................................................................................................................................24
Figure 13: Number of vocational training students and relatively ratios of vocational training to all pupils in secondary
education (%), 2003-2018........................................................................................................................................................................25
Figure 14: Total Out-of-pocket health expenditure, % of private expenditure on health, 2000-2016 .................................28
Page viiDanish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
ECONOMIC PERFORMANCE inflation rate benefited from prudent monetary policies
and an inflation-targeting framework, not to mention the
Morocco is a lower-middle-income country and ranked
declining import prices such as the international costs in
5th in Africa in terms of Gross Domestic Product (GDP)
fossil fuels in recent years. Higher salaries and low
volume. The country is considered the most competitive
inflation have supported private consumption, which
economy in Northern Africa. The GDP per capita growth
contributed the economic growth.
was estimated at 2.1% on average in the period from
2010 to 2019, which was higher than the MENA
Inequality measured in the distribution of family income
(excluding high income) average at 1.0%. In recent
is measured through the Gini index, which estimated
years, the growth experienced a downward as
value of 40 (0 represents perfect equality, while 100
shrinkage of agricultural output due to drought and
implies extreme inequality).3 Inequality is more rampant
modest non-agricultural expansion. This situation further
in Morocco than Tunisia and Algeria, indexed at 33 and
plunged into a potentially deep recession in 2020 as an
28, respectively. Few are working poor living below
impact of the global coronavirus (COVID-19) pandemic
US$3.2 per day among the employment, and the
leading to disruptions to tourism and trade (see Table 1
middle-class grew fast by 36 percentage points from
and Figure 1).1
2000 to 2019 (Table 2). This evolution is reflected in the
Table 1: Key economic data in Morocco, 2019 growing segment of employees supported by structural
GDP (current US$) US$ 119 billion
economic reforms (see more in Workforce section).
However, around 59% of the workforce are
GDP per capita (current US$) US$ 3,204 economically inactive and excluded from the economic
GDP per capita growth class projections. The broader national poverty
1.7 %
(2015-2019, average)
headcount ratio fell from 15% in 2000 to 4.8% in 2013,
General government consumption
18 % which was mainly widespread in rural areas. Another
expenditure (% of GDP)
Tax revenue (% of GDP) 22 % issue is that around 16% of the population live under
Sources: World Bank, World Development Indicators constant threat of falling back into poverty due to lack
of adequate social services in poorer regions and
Figure 1: Gross Domestic Product, inflation, and current vulnerability to shocks.4 Estimates of the impact of
account balance in Morocco, %, 2010-2021
6 COVID-19 suggested that the incidence of poverty could
reach 6.6%, based on per capita income in 2020. 5
4
2 Table 2: Estimation and projection of employment by
0 economic class in Morocco, 2000-2019
Moderately
-2 Extremely Near poor
poor Middle class
Year poor (>=US$3.20
-4 (>=US$1.90 & (>=US$5.5)
(Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
An increase in gross fixed capital formation signals how areas in all 12 regions of the country. The strategy of
factors of production accumulate. It is the creation of creating specific interlinked sector-specialised areas was
aspects (e.g. office buildings, equipment, tools, part of the Industrial Acceleration Plan, launched in 2014
machinery, computers, office materials, factories, and to expand industrial development between 2014 and
vehicles) that help an economy to produce more. When 2020. The aggregate industry sector has not increased
the indicator’s value increases, capital stock and its value-added share in the GDP during the 2010s (see
aggregate income increase, the production rises, and the ahead in Figure 8).
country gets richer. A country needs to generate savings
and investments from household savings or based on The FZ districts operate with fiscal incentives for the
government policy, meaning that when people save participating firms, to boost the establishment and
more, capital formation increases.7 Data shows that the development of industrial, commercial, and service
gross fixed capital formation in Morocco since 2000 has activities. Companies located within the zones enjoy full
increased from 27% of GDP to 34% in 2008, to corporate tax exemption during the first five years. In
decrease down to 29% in 2019; the MENA average was addition, companies are subject to a reduced tax rate of
seven percentage points lower at 22% of GDP in 2019. 8.75% for the following 20 years.9 Goods entering the
zones are Value-added Taxed exempted. It is an
Foreign Direct Investment (FDI) measures the ownership obligation to export at least 85% of their production.
of businesses in a country by an entity based in another
country. A high measure indicates a lasting management There are scarce data available on FZs’ employment.
interest in an enterprise from abroad. In Morocco, the FDI Some data from 2006 suggested that 145,000 workers
has been fluctuating since 2000 and was situated at operated in two FZs, out of which approximately 20%
2.5% of GDP on average in the period from 2015 to were women.10 Activities in the EPZs are diverse and
2019; the MENA average was lower at 1.0%. It suggests cover the textile sector (45%), electrical and electronic
that more companies from outside Morocco invest in metallurgical industries (37%), services (7%), and agro-
Moroccan companies than in the MENA region in general. industry (7%).11 Morocco has oriented some of its zones
In contrast, personal remittances received in Morocco is to high-tech activities, car manufacturing and aeronautics
significantly higher at 6.4% of GDP, which has become have increased in exports, as previously mentioned. The
central for consumption (see also Migration section). largest project is the transformation of the port at
Tangiers into an international logistics hub.
The Doing Business indexed Morocco as number 53 out
of 190 countries (1 is best) in 2020 – an improvement In FZs, work contracts were not always written, and when
from ranking 60 in 2019. Out of ten indicators, the they were, they were fixed-term contracts. Some
country scores lowest on getting credit (119) and companies did not respect the duration of maternity
resolving insolvency (73). It scores best on dealing with leave and that pregnant women suffered from intensive
construction permits (16) and paying taxes (24) (see pressures to quit their jobs, mainly from management. It
more details in Appendix Table 23). Compared to has also been noted that the wages declared were often
countries in the region, Morocco is scoring better than below the wages paid, and many workers were not
Tunisia (78), Algeria (157), and Jordan (75). It is declared to the Social Security National Fund.
worthwhile to mention that this index provides a snapshot Organising workers in these zones has been complicated,
of the cost of complying with formal regulations for e.g. trade union access to the zones was heavily
companies that are not small enough to loophole the law restricted, making freedom of association almost
or large enough to curve it, according to media.8 impossible in practice. Workers were too scared to form
trade unions, for fear of losing their jobs. Although the
Labour Code requires labour inspectors to enforce
Free Zones (FZ) labour law provisions, trade union organisations have
denounced the passivity and incapacity of the labour
The legal framework for Free Zones Law was approved
inspectorate. They stated that inspectors could not access
in 1994. The government established six Free Zones,
the EPZs freely and that they did not reply to requests
which were set in Tangiers, Tanger Med Ksar el Majaz
from workers to visit the workplaces.12
Mellousa 1 and 2, Dakhla and Laayoune, the free
storage zone of hydrocarbons of Kebdana and Nador,
and the export processing zone in Kenitra. In a business
charter from 2016, which amended the Free Zones Law,
the government committed to establishing new economic
Page 2Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
LABOUR LEGISLATION as other trade unions, dropped below the 6% threshold
(Table 3, see also more in Social Partners section).
The legislation regulates, sets standards, and restrictions
for the labour market in Morocco. Most are based on Table 3: Results of the professional elections, 2015.2020
Royal Decrees (Dahirs) and several have been repealed Trade union centres Total Share
by the Labour Code. The country counted 675 labour- SAS * 17,399 50 %
related legislatures in 2019 by ILO. A wide range of bills UMT 6,175 18 %
was approved in recent years as well as ratified three CDT 3,240 9.3 %
ILO Conventions in 2019 (see ahead and Appendix UGTM 2,655 7.6 %
Table 24 and Table 25). UNMT 2,572 7.4 %
FDT 1,339 3.8 %
ODT 644 1.8 %
Some of the most central laws approved in recent years
Other trade unions 933 2.7 %
were the Pension Law and the Law Advances Domestic
Total 34,946 100 %
Workers' Rights, both from 2016. The former raised the * Without affiliation.
retirement age from 60 to 63 for public sector Source: Ministry of Employment and Social Affairs.
employees (see more in Social Protection section). The
latter was considered as ground-breaking for domestic Status of the central labour legislation is summarised
workers in Morocco. Before the adoption of that law, below.
domestic workers were excluded from the Labour Code,
leaving them no legal rights to a minimum wage, limits on Constitution14
their hours, and not even a weekly day of rest. In July 2011, a new constitution was approved by a
popular referendum. The constitution was an aftermath
Elections in Morocco are held on a national level for the of popular protests in February 2011 that was part of a
legislature. Parliament has two chambers. First, the wave of uprisings in Arab countries. A commission of
Assembly of Representatives of Morocco has 325 experts wrote the new constitution appointed by the king
members elected for a five-year term, 295 elected in rather than by an elected constituent assembly or any
multi-seat constituencies, and 30 in national lists consisting other representative body. A limited consultation process
only of women. Second, the Assembly of Councillors has with stakeholders from civil society and political parties
120 members, elected for a six-year term, elected by took place during the drafting process.15 The constitution
local councils (162 seats), professional chambers (91 introduced a transferring of several powers from the king
seats), and wage-earners (27 seats). Collective to the prime minister, such as the power to appoint high-
representation has been under consolidation during the level civil servants, the power to grant amnesty and to
last decade. The second chamber of the parliament preside over the meetings of the cabinet. The powers of
concerning the professional chambers have the parliament were broadened. Despite these changes,
representation from the trade union movement and the constitution arguably did not reduce the power of the
employers’ organisations. king. The constitution recognises freedom of association,
the right to strike and the freedom to join unions. The new
The employers’ organisations are represented in constitution strengthens the role of trade unions as social
professional chambers by eight delegated from CGEM, and democratic players, maintaining a quota for their
20 delegates from the Chambers of Commerce, Industry representation in the Second Chamber of the parliament.
and Services, and eight representatives from Chambers
of Agriculture, Handicrafts and Fishing sectors. Trade In 2019, decentralisation was in focus, landmark reforms
unions are involved in the professional electoral base to be carried out in 2020 were promised aiming at
representing 20 trade unionists (elected by employee improving manpower of local institutions or ability to
delegates).13 According to the final count of the promote policy change.16 An advisory committee was set
mobilised electoral base, 50% voted for the trade union up to address social and economic challenges to be
organisations in the running. In contrast, the remainder of submitted to the king in June 2020. This process was
the votes went to those ‘without trade union affiliation’ stalled somewhat due to the impact of COVID-19.
(French acronym: SAS). Based on the representativeness
criteria (minimum of 6% at the national level), the UMT, Labour Code17
CDT, UGTM, and UNTM were recognised as the most The Labour Code was established by Dahir (royal
representative trade unions. Both FDT and ODT, as well decree) in 2003 after a tripartite process that took
years. The code regulates employment relations,
Page 3Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
working-age, maternity leave, working hours, collective reserve organisations, and iv) National Social
occupational safety, health, wages, trade unions, Security Fund. A series of optional systems are also
employers’ representation, and relevant councils. It also available. Generally, the social protection system is
standardises the settlement of collective labour disputes under a reform (see more in Social Protection section).
(see more details in Appendix Table 27). The Code
furthermore establishes mechanisms for social dialogue
at the national and enterprise level as well as provides Observations on labour legislation
the legal framework for the national system of labour The International Trade Union Confederation (ITUC) has
market governance. As a result of a tripartite review few observations of the labour-related legislation in
from 2014 of the Labour Code, a series of identified Morocco concerning the international standards in the right
gaps and problematic areas in the Labour Code were to freedom of association and the right to strike.21 Main
identified, and it was assessed it would that time to be issues are:
solved.18 In July 2020, the government passed a
bill concerning fixed-term contracts, which was a • Restrictions on the right to elect representatives and
procedure related to the enforcement of the labour code self-administer in full freedom.
articles. • Restrictions with respect to the type of strike action
(e.g. pickets, wild-cat, working to rule, sit-down, go-
Before 2016, domestic workers were not covered by the slow).
Labour Code, thereby depriving them of the right to form • Authorities’ or employers’ power to unilaterally
unions.19 The entry into force in 2017 of Act. No. 19-12 prohibit, limit, suspend or cease a strike action.
fixing the working and employment conditions for men
and women domestic workers, and the Bill concerning It is worthwhile to mention that agricultural workers are not
workers in traditional sectors. It improved their access to covered by the Labour Code, thereby depriving them of
adequate dispute-resolution systems, the requirement of the right to form unions. Also, around one out of two
a standard contract, limits on working hours, a weekly workers operate in the informal economy with loopholes
rest day and a minimum wage.20 However, many in the labour and business regulations due to lack of
domestic workers still experience exploitation, and the awareness or incentives. The government is criticised for
new law offers less protection for domestic workers than not adequately enforcing labour laws due to lack of
the Labour Code does to other workers. Lack of inspection staff and resources.22
awareness of the law limits workers’ ability to defend
their rights.
Ratified ILO Conventions
The draft law 15-97 on the right to strike, submitted to
Concerning Morocco’s ratification of the international
Parliament for approval, created tensions between
labour standards, a total of 65 ILO Conventions are
trade unions and the government in 2019. The draft bill
ratified.23 The conventions cover principles and rights at
establishes a new legal framework concerning the basic
work. The latest ratified Conventions were Promotional
rules and principles of exercising the right to strike. Parts
Framework for Occupational Safety and Health
of the trade union movement criticised the government’s
Convention (C187), Migration for Employment
initiative since they were not consulted in accordance with
Convention (C97), and Social Security (Minimum
the Social Dialogue Agreement framework, before
Standards) Convention (C102), and all in June 2019.
submitting the draft (see more in Social Dialogue section).
The eight ILO ‘Fundamental Conventions’ are the most
Several independent unions are permitted by the Labour
important and fundamental. The nation has ratified seven
Law, and it requires 35% of the total employee base at
of them, leaving out Freedom of Association and
a workplace to be associated with a union to be
Protection of the Right to Organise Convention (C087).
recognised as representative and able to engage in
collective bargaining. The bill prohibits antiunion
ILO has designated four ‘Governance Conventions’ that
discrimination and companies from dismissing workers for
are important to build national institutions and capacities
participating in legitimate union-organising activities.
that serve to promote employment, i.e. these conventions
Social protection legal framework support a well-regulated and well-functioning labour
Social protection is set by several obligatory system: i) market. The country has ratified all of these.
Moroccan Retirement Fund, ii) Collective system for
retirement wages payment, iii) National Fund for
Page 4Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
ILO has furthermore 178 ‘Technical Conventions’, out of and exports, specific categories of goods, or a single
which 85 are “Up-To-Date” and actively promoted. An category. A trade agreement is an opportunity to open
Up-To-Date Convention is one that is ready for another part of the world to domestic producers.
ratification by member states and/or one that has been Generally, trade agreements, including labour
examined by the ILO Governing Body and deemed still provisions, are on the rise but remains a minority and
to be relevant.24 To date, Morocco has ratified 54 of the becoming increasingly accepted.
Technical Conventions, out of which 17 are “Up-To-Date”
(see also Appendix Table 25). Morocco has been a member of World Trade
Organisation (WTO) since January 1995 and a member
The Committee of Experts on the Application of of the General Agreement on Tariffs and Trade (GATT)
Conventions and Recommendations (CEACR) is an since June 1987 that aims to liberalise trade agreements,
independent body composed of 20 legal experts at the and to establish a mechanism for resolving trade
national and international levels, charged with disputes. Regarding dispute cases involving Morocco:
examining the application of ILO Conventions and none as a complaint, three cases as respondent, and none
Recommendations by ILO member states. In 2019, the as the third party.26
committee made four direct requests to the Moroccan
government, including providing information on Morocco has several Free Trade Agreements (FTAs)
application and development of conventions, take including with Egypt, Jordan, Tunisia, Turkey, the United
measures to guarantee the payment of minimum wage in Arab Emirates (UAE), and the United States; and has
the informal economy. advanced trade status with the European Union (EU). The
country also has signed FTA with the European Free
Labour policies Trade Association (EFTA), which is an intergovernmental
During the 2010s, a wide range of policies was launched organisation of Iceland, Liechtenstein, Norway, and
for strengthening the labour market and its job creation. Switzerland. Morocco has also begun FTA negotiations
The main policies in recent years are summarised below. with Canada and several West African states.
The National Agency for the Promotion of Employment Morocco is part of the Greater Arab Free Trade Area,
and Skills (ANAPEC) launched its 2020 Vision in 2015 to which entered into force in 1998. It includes 16 other
expand the agency’s coverage to also include member states of the Arab League. The government
unqualified job seekers. ANAPEC also launched three council adopted a bill ratifying the agreement to
active labour programs: Idmaj (wage subsidies for establish the African Continental Free Trade Area (CFTA)
unemployed graduates); Te’hil (youth training); and in February 2019. The agreement aims to facilitate
Moukawalati (entrepreneurship promotion through integration between African markets. Also, Morocco
training and financial assistance).25 formally applied to join the Economic Community of West
African States (ECOWAS) in February 2017. In
Other ministries have implemented strategies concerning November 2017, Morocco began negotiations with the
i) youth integration, which plans to improve the training South American trading bloc Mercosur to establish a free
system and integrate youth into the labour market trade area.27
through internship or skill matching; ii) employment, which
aims to increase employment and productivity; and iii) Negotiations for a Deep and Comprehensive Free Trade
microenterprise promotion, which intends to support Area (DCFTA) between the EU and Morocco were
microenterprise financing). Many other sectoral plans aim launched in March 2013. Four negotiating rounds have
to promote job creation through macroeconomic such as taken place so far, the most recent in April 2014. The
Morocco's Global Jobs and Moroccan Green Plan, as DCFTA will build on the existing EU-Morocco Association
wgell as sectoral policies such as compensation reform, Agreement, which entered into force in 2000 and
flexible exchange rate policy, pro-growth sector created FTA between the EU and Morocco. The overall
strategies, and accelerate an expanding of social goal of the negotiations is to create new trade and
welfare protection to all its citizens (see more in Social investment opportunities and ensure better integration of
Protection section). Morocco's economy into the EU single market, not to
mention bringing the Moroccan legislation closer to that
Trade Agreements of the EU in trade-related areas.28 In the framework of
Trade agreements regulate international trade between the FTA, a protocol establishing a bilateral dispute
two or more nations. An agreement may cover all imports
Page 5Danish Trade Union Development Agency
Morocco Labour Market Profile 2020/2021
settlement mechanism was established and entered into Trade Unions
force in 2012. The trade union movement is a central social force in
Morocco. Geographically, Casablanca has an intense
Morocco’s FTA with the U.S. entered into force in concentration of unions, while some unions have moved
2006. This agreement is the only U.S. FTA on the offices to the capital Rabat to engage more with the
continent of Africa. The U.S.-Morocco FTA is government. As mentioned, the country has still not
comprehensive and includes chapters detailing ratified the international fundamental convention on
commitment on intellectual property rights, labour, and Freedom of Association and Protection of the Right to
environmental protection. It includes both partners are Organise (C087).
obligated to enforce the four core ILO labour standards,
as well as acceptable conditions of work, in a manner A full dataset of the number of trade unions and
affecting trade.29 Bribery of any form is outlawed, membership rate was scarce. The three leading
whistle-blowers are granted protection, and U.S. organisations – Moroccan Labour Union (UMT), General
companies enjoy the same rights as Moroccan companies Moroccan Trade Union (UGTM), and Democratic Labour
when investing in the country. Confederation (CDT) – represented around 754,200
members in 2019. Trade union density of employees
Alternative dispute resolution (ADR) has also merged in (paid employment jobs) was estimated at 14%, which
Morocco. Studies suggest there is a marked was lower than the Northern Africa countries, except
incompatibility between, on the one hand, contemporary Jordan.33 The total membership rate is slightly
approaches to ADR and conflict resolution deriving from underestimated due to lack of data from three smaller
perceived western values, and on the other hand, Islamic trade union centres (UNMT, FDT, and ODT).
methods of dispute and conflict resolution based on
legalistic tradition and history.30 Table 4: Status of trade unions in Morocco, 2019
Trade union centres 6
National (sector) federations 59 *
SOCIAL PARTNERS Local/regional federations 135 *
Social partners are central to promote the realisation of Members of trade unions 754,200 **
core labour rights and social justice for workers by
Trade union density of employment 6.9 %
protecting freedom of association and collective
Trade union density of employees 14 %
bargaining. These organisations are usually represented
as the government, trade unions, and employers’ Paying dues (UMT) US$10 per year
organisations. * Data from UMT and UGTM, excluding CDT. ** This number covers UMT,
UGTM, and CDT.
Source: International Trade Union Confederation; DTDA SRO Tunisia and
own estimations on trade union density by supported data from ILOSTAT.
Government
The Ministry of Employment and Social Affairs is Many unions are closely linked to politics and are not
responsible for developing and implementing financially independent. The staff of the public sector
government policies, laws and regulations in the areas of unions is put at the disposal of the trade union by the
labour protection, employment and social protection of government. Each representative union (UMT, CDT,
workers.31 The ministry is mandated to promote social UGTM, UNTM, and FDT) also receives government
dialogue, conduct labour related research, and expand funding according to the election results they obtained in
employment opportunities. the professional elections. Among the trade union
organisation with affiliation, UMT had the best result on
The Ministry of Solidarity, Women, the Family and Social the last professional elections of 18% in 2015 followed
Development is responsible for promoting social by CDT of 9.3%, UGTM of 7.6%, and UNMT of 7.4%
development. The Ministry of National Education and (revisit Table 3).
Vocational Training is mandated to develop legislation
According to data from ITUC, the aggregated trade
and implement policies up to secondary school.
union membership rate appeared to fall by 34% during
the 2010s among the three main centres. This drop was
In Morocco, the High Commission for Planning (HPC) is the
mainly by UGTM but also CDT. In contrast, UMT
national statistical office that is responsible for producing
experienced an upturn (see details in Table 5). The
economical, demographic, and social statistics, drawing
declining employment in the manufacturing sector
up and evaluating the macroeconomic framework. 32
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